Option Agreement

3 Months Ended

Oct. 31, 2012

Option Agreement [Abstract]

OPTION AGREEMENT

4.     OPTION AGREEMENT

On September 14, 2012, the Company entered into an agreement with AHL Holdings Ltd. and Golden Sands Exploration Inc. for the exclusive option to acquire an undivided 70% legal and beneficial interest of the property in which the certain right, title, and interest in mining claim is held.

In order to exercise the right, the Company is required to pay $1,700,000 in aggregate as follows:

· $50,000 on signing;

· a further $50,000 by November 15, 2012;

· a further $200,000 by September 14, 2013;

· a further $300,000 by September 14, 2014;

· a further $400,000 by September 14, 2015;

· a further $700,000 by September 14, 2016; and

Issue and deliver 100,000 shares by September 30, 2012 and incur exploration expense of $4,000,000 as follows:

· incur exploration expense of at least $150,000 by February 15, 2013;

· incur cumulative exploration expense of at least $500,000 by December 31, 2013;

· incur cumulative exploration expense of at least $1,000,000 by December 31, 2014;

· incur cumulative exploration expense of at least $2,000,000 by December 31, 2015;

· incur cumulative exploration expense of at least $4,000,000 by December 31, 2016;